Lead by Example
How does Fibria make a difference in the market?
We want to make a difference by setting the best standards in our planted forests, conserving and restoring native forests, as well as pursuing greater efficiency in our industrial and logistics operations. All this, however, without neglecting our commitments to dialogue and creating value to our audiences. After all, we offer high-quality pulp, fair prices, and produce sustainably. We are the world's largest producers of eucalyptus pulp, but we also want to lead by example.
Is the "Fibria way" perceived by the communities surrounding the operations?
One of our Long-Term Goals focuses precisely on the communities' perception of how we do things. In the most recent survey, results showed that people recognize Fibria as a company that delivers on its promises and cares about the interests of neighboring communities. This makes us confident that we are on the right track, but we know there is much to do. Therefore, we are always building our company to be even more transparent, reliable, and ready for open dialogue. Our goal is to achieve 80% approval by 2025. The most recent survey, conducted in 2016, found a favorability rate of 70.6%. But we want to go beyond. "How" is just as important as "what" you do.
“The clients know that our value proposition includes the ability to deliver with quality and unwavering social and environmental commitment”
And what about the clients?
Day after day, we develop relationships that go beyond the commercial aspect. We want, for example, our sustainability department to talk with the sustainability departments of our clients, our finance department to talk with their finance department. We want to strengthen the relationship with people involved on both sides. In addition, they know that our value proposition includes the ability to deliver with quality and unwavering social and environmental commitment. In order to get to know us better, we even had clients who visited our operations, wanting to see firsthand our social investments. Our business is not just planting trees and producing pulp. Our business is about growing together with our clients through joint projects.
How do you evaluate the relationship with the Quilombolas and the groups fighting for land? Were there any advances?
Lasting relationships always have their ups and downs. We have emerged from a state of confrontation and conflict to a state of cooperation and generation of joint value. We addressed issues, created dialogue, and established an M.O.. Our relationship with the Landless Workers Movement (MST) is structured and works. Now the social environment in the country has changed. Winds shift and hinder the relationship. So, we need to reaffirm aspects of our agreement and proceed with what has been developed so far. Concerning the Quilombolas, we will develop the Rural Land Development Program (PDRT), generating opportunities, wealth, and, above all, improving our relationship. We are open to dialogue with the Quilombolas to seek a possible solution for this land issue, just as we did with the movements that fight for land.
“To add value, one must understand the perspective, not only of our clients, but also of the market in which these clients operate, and of our clients' clients”
How is the company preparing to face the increase in pulp supply in the global market in 2017?
Everything we have developed gives us resilience in times of market stress. There will be no limitation in sales, only in terms of price. Since some clients already see our value proposition, now is the time to obtain their preference. Our social and environmental conduct and quality of our services are valued attributes. We still don't have a complete differentiator to change this dynamics. The alternative is to navigate the market well and hold onto the relationship developed with our clients. It is not because the market is under stress that we will refrain from doing what we believe. We want to go further and in order to do so, we have brought back the concept of client-centered focus. To add value, one must understand the perspective, not only of our clients, but also of the market in which these clients operate, and of our clients' clients, building confidence to develop projects together.
What is there to come in terms of innovations?
We are looking for potential new businesses from planted forests and as a complement to pulp. Part of the new products in bio-business are geared to segments that are different from ours, in other words, they are associated with the petrochemical industry, for example. Another part of the initiatives in innovation strengthen the pulp market where we operate, as is the case of nanocellulose. It is through this portfolio that clients have approached the company in order to jointly study possible collaboration. There are still a hundred new developments, new connections, and new markets that we want to develop. It is at times like these that the company's reputation helps greatly, since the entry risk is much lower.
“At a time when unemployment harms so many Brazilian families, we had as many as 8,000 active workers at one time in our construction site. Três Lagoas, in 2016, was the city that generated the most jobs in Brazil”
What is it like to carry out a project the size of Horizonte 2, one of the largest private investments in Brazil in 2016, in a time of economic downturn, unemployment and social pressure?
The expansion work of our unit in Três Lagoas, Mato Grosso do Sul, is a milestone for Fibria, for the city, for the region, for the state, and for Brazil. A project of this size generates thousands of jobs and promotes economic development at both regional and nationwide level. At a time when unemployment harms so many Brazilian families, we had as many as 8,000 active workers at one time in our construction site. Três Lagoas, in 2016, was the city that generated the most jobs in Brazil and we are very proud to have contributed to this. But we know of the impacts caused by a project this size, such as the increased flow of migrants to the city in search of jobs, the pressure on public services, among others. In order to manage these risks, we have created mechanisms such as a working group on Sustainability and Compliance. This group brings together the main suppliers, with representatives from the areas of Fibria directly associated with the project, and oversees a variety of aspects, from health to prevention of sexual exploitation of children and adolescents. Dialogue, transparency, involvement, agility, partnership, joint construction, and courage to face difficult situations are part of our daily lives. It's been like this so far. And this is how we hope to reach the completion of Horizonte 2.
For a company that values excellence in safety and is committed to eradicating any fatalities in its operations, how do you deal with the fatalities that occurred in 2016?
We are extremely frustrated and saddened by the fatalities. But we are convinced of the consistency of our work for safety. Experts say we have managed to reduce the likelihood of fatalities. But, regrettably, they occurred in 2016. We have strengthened, in our health and safety management, the protocols for high-risk situations, and we are achieving good performance. The accidents with and without lost time have been falling gradually. The Horizonte 2 Project is a good example. We are talking about more than 13 million hours worked, with a peak of more than 8,000 people in the construction site simultaneously, without any fatalities and few lost-time accidents, most of which of very low severity. So the solution is to continue working on behavior, company culture, and collective culture, including the involvement of families in this discussion.
What will Fibria be like 10 years from now?
We have some aspirations. We want to double pulp production, through organic growth, consolidations and commercial contracts similar to the one we signed with Klabin. We are also working to offer differentiated products, with a client-centered focus. In terms of diversification, our goal is to develop a portfolio of renewable products and services, unrelated to the concept of commodity. In the institutional aspect, the goal is to shape an increasingly agile and highly reputable company, to level local and global competition in higher standards.